The construction robot market is expected to grow at a CAGR of approximately 13.5% during the forecast period (2020 - 2025). The construction industry has seen the least automation, as it is the most labor-intensive industry across the world. However, robotics are changing the way how construction is done, whether it is new commercial construction, demolition, or renovation. Also, the construction industry involves monotonous and hazardous processes, which are the major factors paving the way for robotics in the industry.
- The major factors affecting the adoption of robots in the construction industry are enhanced productivity, quality, the safety of workers, and growing urbanization worldwide. Additionally, the implementation of robotics in the construction industry eliminates human issues such as laziness, errors, damage, conflicts, etc. Robots can also work in hazardous environments and enhance productivity.
- Moreover, robotics can work relentlessly without absenteeism, which leads to increased productivity by using the robot to work for more hours than a manual workforce. Also, the increase in the need for building energy-efficient and cost-effective building in the construction industry is expected to boost market growth.
- However, the high costs involved in implementing and maintaining robotic on-site over the manual workforce is a major concern for the construction companies, hindering the market growth.
- However, factors such as the adoption of 3D printing in the construction industry and the rise in automation at construction sites can generate significant opportunities for this market. There is an increase in the number of start-ups and pure players focusing on 3D-printing of building over the last few years.
Scope of the Report
The construction industry is the least automated industry, however, the introduction of robotics in the industry is expected to change the way the construction industry works. Robotics is expected to automate the various functions in the construction industry, for instance, demolition, bricks laying, etc. The adoption of 3D printing is also paving way for the construction industry towards automation. The market study provides a brief understanding of the implications of the deployment of robotics in the construction industry while providing a regional analysis.
Key Market Trends
Demolition Function Expected to Hold a Significant Share
- Demolishing is an integral process in the construction industry as it is an essential process in the renovation activities and new commercial buildings. Demolishing is time-consuming, potentially hazardous work, regardless of job site conditions.
- Also, selectively demolishing concrete elements within an existing structure majorly for renovation purposes, while using heavy equipment is a challenging job for the construction companies. According to the Robotic Industries Association, currently, demolition robots occupy approximately 90% of the total market share for construction robots.
- Since demolition is one of the most hazardous tasks of the construction industry, manual workers are prone to various fatal accidents and damages. Implementing robotics for demolition function increases the safety and efficiency of the workers, hence increasing the cost savings for the construction companies. With strong growth potential, demolition robots are set to disrupt the construction and demolition industry by leading a wave of automation.
Asia-Pacific Expected to Register Maximum Growth
- The Asia-Pacific region is expected to register the maximum growth rate in terms of the adoption rate of robotics in the construction industry. The growing urbanization and wide availability of natural resources in the region are major factors driving the growth in the region.
- Also, the increasing trend of migration to urban areas for employment or education purposes is increasing the need for residential and non-residential building space. This gives a steady growth to the need for the adoption of construction robots in the region.
- Further, many robotics companies are expanding their product portfolio to provide robotics for the construction industry in the region. For instance, last year in December 2018, Shimizu Corporation which is based in Japan introduced robots for civil construction. Also, multiple innovative construction robots developed by the company have been deployed at various construction sites of high-rise hotels in Shin-Osaka.
The competitive landscape of the construction robot market is moderately concentrated due to the presence of a few vendors in the market. The construction industry is one of the least automated industry and the adoption rate of the robots in the industry is at a very nascent stage, Hence, the market players are looking for lucrative opportunities in the market to launch its products and gain the maximum market share. Also, the vendors are looking for opportunities to raise investments from various stakeholders to enhance their production of robots for the construction industry.
- September 2019 - Built Robotics recently closed a USD 33 million Series B funding round, led by Next47, the global venture fund backed by Siemens. The company transforms construction equipment – including excavators, bulldozers and skid steers – into fully autonomous robots. The company’s automated guidance systems can be installed on existing equipment from any manufacturer while maintaining complete manual operation capabilities.
- August 2019 - Sisk becomes the first construction company in Europe to introduce lifting robotics to the site. The company says it is investing EUR 150,000 as part of its commitment to enhance productivity on its sites and minimize health and safety risks to its workforce.
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